The teachings of Marx - 2 : How is the price of a product calculated? How is the price destined?
This is an important question in the analysis of capitalism. You don‘t treat something immovable with this, something that is only rigid. No, the question of price development is lively and interesting.
In order to understand the determination of a price, a relation is established here between seller and buyer. These then create the following relation/correlation: Demand depends on supply, and supply depends on demand. A seller acquires the goods, and if several sellers have the same quantity of goods, it is essential to change the price. Furthermore, sellers have a simple aim: To get as much as possible to the „man“, and of course the exclusion of the competition. In order to achieve this aim, the seller has to adjust the price, lower it so that demand increases. But at the same time prices are rising again as demand rises! What‘s the point of that? Well, competition also prevails among buyers, who rush to the goods and thus drive up the price. That is clear. So, production costs serve as a measure of profit. If a buyer contains a lower sum than the production costs themselves, well, he has lost and made losses. Okay, it sounds complicated, and sometimes it takes effort to understand the theory. But let us keep the following principle, which Marx describes in the capital: Growing demand is leading to rising prices. Declining demand is leading to lower prices. Thus it quickly comes to the mind that the price of a product is always either higher or lower than the production costs. The following question remains to be answered: What does a capitalist do when the price of a particular commodity rises? The answer is: He takes over the part of the industry, he wants to accumulate his capital and thus make wise use of fluctuating conditions. But if only a fall in prices comes, hope is gone, the capitalist seeks something „new“ for himself. Marx called this „disorder in order.“ Times in which the value exceeds the production costs are compensated by times in which the value is below them.